Jelbanian Economy
. The economy of Jelbania is the 48th largest in Terra and is plagued by the high levels of corruption and until recently, over-regulation, very high taxes and spending. Growth traditionally has been very low, hobbled by a massive black market.but this has improved in recent years. Government policies The Governments of Jelbania have traditionally followed irresponsible fiscal policies with orgies of overspending, over-taxation and massive budget deficits common. In the beginning of the 37th century, the government has sharply changed course, adopting neoliberal policies which initially saw income tax slashed and flattened to a single 5% rate, corporation tax lowered 10% and VAT levied at 10% on basic foods. Progressive taxation was restored later on with rates of 5%, 15% and 27%. The national budget has largely been in balance since the Khan's government took over and a minimum target of maintaining a surplus of 0.6% of GDP has been declared official policy. In the past 8 years since the policy was announced, the budget has been balanced each year but usually with a surplus of no more than 0.25%. Jelbania's national debt has gone from around 318% in 3500 to 141% in 3510 and has fallen to 68% (3632), This has seen the country's credit rating rise from C to BBB Devolved government are expected to maintain balanced budgets and have very limited credit lines available to them. The 3770's economic boom has led to massive budget surpluses of more than 5% of GDP. Agriculture Agriculture and livestock have traditionally been the dominant sectors of the Jelbanian economy and remains the largest although they have lost much ground to other sectors such as mining. The two sectors comprised about 61% of the economy around 3500 but this share has fallen to 39% and employ about 48% of the labour force. Amongst the nomadic clans, old fashioned and inefficient methods remain popular while in the mostly Jelbanien owned plantations and large farm, modern and mechanised farming methods are almost universally used. Chief crops include cereals, potatoes, fruit, vegetables and tobacco. Animal husbandry, once the dominant agricultural activities has steadily fallen behind cultivation over the past decades. Fishing Fishing is an important activity along the shores of Lake Majatra, the Drtéréksrne River and along the north eastern coast. It is a trade dominated by Jelbaniens and large fishing industries dominate the trade. Jelb Canneries, one of the largest companies in the global fishing industry has its headquarters in Rilmos. Mining Jelbania is blessed with many minerals including copper, uranium, zinc, coal, magnesium and titanium sponge. The country is thought to hold some of the largest reserves of coal and uranium in all of Terra. The largest coal site in the continent of Majatra is located near Jeztridomura, Perimor has high grade deposits and is estimated to yield around 5.4 billion tonnes of coal. The greatest uranium deposits are located in the south east of the country in Nemawar and remain largely unexploited. Mining makes up around 53% of all Jelbanian industry. In the 3770's the mining industry was nationalised, with only small scale activy allowed for the private sector. Trade Jelbania's foreign trade is largely limited to Majatra and more than 65% of its foreign trade is with the three countries it shares borders with - Vanuku, Deltaria and Zardugal. The Razamid Caliphacreated new trade opportunities with countries in southern and eastern Majatra. The Government has successfully if slowly increased the country's trade partners outside of Majatra. Business Environment Prolonged poor management of the economy coupled with corruption and overregulation has made the Jelbanian economy one of the worst places to do business not just in Majatra but in Terra. In the past few years, the reformist measures implemented by the Government has seen a general improvement in the business climate and increased foreign investment. Economic History The Jelbanian economy has seen average growth rates rise from under 1% in 3600 to an annual average of 6.5% in 3610. Since the economic liberalisation of 3602-5, foreign investment poured in while an increasing number of Jelbeks starting their own enterprises. High growth rates held steady until the breakout of the Augustan-Jelbanian War in 3624, the economy shrinking between 3625 and 3630. After the war, recovery began and the economy recorded modest 3.7% growth (3632) This continued throughout the 3630's right to the mid 3680's. Jelbania's entry into the Razamid Caliphate saw a sharp increase in exports into fellow Caliphal states. High public expenditure caused a debt crisis in the early 3690's which saw the economy slipping into a recession in 3693 and remained in that state until 3700. Economic growth returned in the new century, slow and averaging just 2% right up to 3721 as political uncertainty gripped the Khanate. The return of the monarchy in 3722 and absolute monarchy in 3624 saw an increase in economic growth, and the economy registered an average 4.8% growth right through the 3720's and during the Second Great Majatran War. Economic growth dipped somewhat from 3730's right through the 3760's when falling oil prices drove up mineral prices. Economic growth has been above 7.5% for most the 3770's. Local Government Finances The Khanate's political conventions grant power over currency and financial policy to the national government but local governments retained some say over taxation and spending. They handle about three fifths of all spending (15% of GDP) and levy property taxes. The provincial income tax rates ranges from 3% in the Nemawar territory of the Vrn clan to 18% in the western city of Amsadomura. The local governments have lost some power since the 3612 Revolution and more in the Age of Autocracy (3724-3786) Unemployment Jelbania lie any other country with great dependence on agriculture, suffers from high seasonal unemployment rates between harvesting and planting. The expanding mining sector helps alleviate the situation. The official rate of unemployment is an estimate of between 14% and 17% but actual figures are said to be between 27% and 32%. There is a lot of underemployment as well, especially in the more impoverished southern taghes. North-South Divide For several centuries the Khanate has been divided economically between a prosperous north and north east and an impoverished south and south west. Incomes in the north are usually on average 30% to 50% higher than those in the more impoversihed southern parts especially near the border with Deltaria The northern economy is more industrialised and the Canrillaise and Majatran minorities are generally better educated and skilled than the majority Jelbek population and other minorities like the Deltarian . This has led to some ethnic tension and massive internal emigration. The southern economy also tends to be less diversified, relying heavily on mining and animal husbandry. Category:Economy of Jelbania